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WeunderstandIndianaviation
www.capaindia.com
CAPAIndiaAviationResearchReportsin2014
INDIA
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CAPAIndiaSectoralAviationResearchReports2014CAPA India is the
leading aviation advisory, research and
knowledgepracticeinSouthAsia.Withmorethan10yearsonthegroundexperiencein
India and the regions largest dedicated team of aviation and
analystsand researchers, we are uniquely positioned to deliver
incisive
sectoralreportsacrosstheaviationvaluechain.Upcomingreportsin2014include:
o CAPAIndiaAviationOutlookReport: 15June2014o
GroundHandlingReport: 7March2014o AirTrafficManagementReport:
31March2014o Business&GeneralAviationReport: 30April2014o
BilateralPolicyReport: 15May2014o MROReport: 31May2014o
AirlineAncillaryRevenueReport: 31May2014o
AviationSkills&TrainingReport: 15June2014o
AirCargo&ExpressReport: 30June2014o
Airport&TravelRetailReport: 30September2014
Indian aviation is complex and dynamic and for businesses
operating
orinvestinginsuchanenvironmentaccesstoindepthresearchandanalysisbasedonaccurate
and timelydata is critical.This isCAPA's
strength.Weunderstandthelocalandinternationalenvironments,weinteractwiththeindustry
on a daily basis andwe continuouslymonitor trends across
thesector.Ourresearchcapabilities,databasesandextensivecontactswithkeystakeholdersingovernmentandindustryareunmatched.These
are key differentiators. Rather than being desktop studies,
CAPAIndias reports are based on months of indepth engagement with
theindustry often involving interviews with hundreds of
stakeholders. Thecombination of primary research, our indepth
industry knowledge andrigorous data analysis allow us to present
clear, thoughtful and
practicalperspectives.Thesecompellingreportsthereforedeliverexceptionalvaluebyleveragingourextensivepresenceandcapabilitiesinthemarkettoprovideaccesstoresearch
and insights which would otherwise be too expensive
orlogisticallydifficultforanyindividualcompanytoconduct.Asa
resultCAPAs
researchreportshavebeenusedextensivelybyglobalorganisations from a
wide range of sectors with exposure to
Indianaviationtosupporttheirstrategicplanninginthemarket,including:
Airlines AirportOperators AircraftLessors AircraftManufacturers
AirNavigationServiceProviders AviationFuelSuppliers
Banks&FinancialInstitutions
Engineers/Architects GroundHandlers Hotel&Resort
Operators ITCompanies MROs TourismAuthorities
The following pages outline the range of upcoming reports
withinformationonreleasedatesandpricing.
AboutCAPAIndia
BackgroundCAPAwasfoundedin1990andhasbeenestablishedinIndiafor
morethan10yearsExperience
Portfolioofmorethan100consultingstudies,research
reportsandknowledgepapersonSouthAsianaviation
ResourcesLargestdedicatedonthegroundaviationresearchandanalyst
teaminIndiaData
Compiledanddevelopedtheregionsmostcomprehensiveandsophisticateddatabasesacrossthe
aviationvaluechainServices
Additionalservicesincludecapitaladvisory,educationandtraining,aircraftadvisory,dataanalytics
andknowledgeprocessoutsourcingClients
CAPAsglobalclientlistincludesmorethan500ofthemost
recognisedcorporationsinglobalaviation
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OtherCAPAIndiaResearchServices CAPA IndiaAviationMonitor
published 8 times a year provides
unique insightswhich are not available elsewhere, into the
financial,commercial, operational performance and fleet plans of
listed andunlisted carriers; airport operator and infrastructure
developments;domesticandinternationaltraffic,yieldandcostanalysis;andthelatestpolicy
and regulatory updates. Subscribers also receive
appendicesconsistingofdetailedmarketdata.Aviationbusinesseswithmillionsofdollarsofvalueatriskcannotafford
to be caught out by unexpected developments in a
fluidmarket.Thesemonitors are invaluable for any organisationwith
exposure tothe Indian market, providing rigorous analysis and a
forwardperspectiveonthedirectionofthesector,leveragingCAPAsextensiveonthegroundpresenceandresearchcapabilitiesinIndia.The
standard annual subscription is US$19,999, however a
25%discountisavailableuntil7March2014,bringingthecostdowntojustUS$14,999.
For more information contact Tarika Wadhwa
[email protected]
Boardpresentationsand industrybriefings on
risks,opportunitiesand the outlook for Indian aviation; including
teleconsulting onspecifictopicsofinterest.
CAPARiskAdvisoryServicesCompany monitoring and asset management
services for
banks,investors,aircraftandenginelessorsprovidingonthegroundintelligenceon
key strategic or operational concerns; uptodate traffic, yield
andcommercial analysis; fleet operating performance; financial
status ofcarriers; debt repayment history; current and prospective
sources offinancing; maintenance procedures; airworthiness issues;
managementchanges;policyandregulatorydevelopmentswhichcouldhaveamaterialimpactonthebusiness;andmacroeconomicissues.Keyrisksandareasofconcernarehighlightedandsupportedbyindependentdataandevidencebased
research. For more information contact Gurdeep Aggarwal
[email protected]
CAPAIndiaConsulting&AdvisoryServicesCAPA India offers a
comprehensive range of consulting and advisoryservices including
strategic and business planning, risk assessments, duediligence,
industry trends analysis, forecasting, market surveys
andcustomisedresearch.Ouradvisoryservicesareuniqueinbeingabletocombinelocalknowledgeand
international experience gained through more than 600
globalassignments.Wehavecompletedinexcessof70studiesinSouthAsiaalonefor
airlines, airports, investors, governments, policy makers,
groundhandlers, maintenance providers, general aviation operators
andtechnologycompanies.
ContactUs
Formoreinformationortoorderanyofourproductsorservices,
pleasecontacteither:
VishalBhadolaAssociateManager+911146921052
[email protected]
Or
TarikaWadhwaCommercialOfficer+911146921036
[email protected]
CAPAProposition
Overthelast10yearswehavedevelopedareputationforfocusingonourclientscorerequirementsanddelivering
solutionsfocusedoutcomeswithintegrity.
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CAPAIndiaAviationOutlookReport2014/15
CAPA Indias flagship report, the annual India Aviation Outlook
iskeenlyanticipatedbytheindustryeachyearastheleadinganalysisof the
direction of one of the worlds most important emergingmarkets. CAPA
has a strong and established track record inaccurately identifying
key trends and developments in the Indianmarket, both on an annual
and long term basis. Each editionincludes:
CAPAsforecastsfortraffic,capacityandyields;
profitandlossprojectionsforeachcarrier;
fleetinductionplansandexpectedneworders;
detailedriskassessmentofeachIndiancarrier.
An assessment of the strategic plans of all domestic carriers
ispresentedincludingprospectsforforeignairlineinvestment,capitalraising,
risk assessments and prospects for new
entrantsparticularlyintheregionalsector.Meanwhileinternationalstrategiesandnetworkplansarereviewedincluding
expected bilateral developments, prospects for
codesharingandscenariosforglobalalliances.Thereportalsoaddressesairportprivatisationanddevelopmentprogrammes,corporatisationof
air navigation services, expected policy and
regulatorydevelopmentsandtheoutlookforancillarysectors.The 2014/15
India Aviation Outlook will be further expanded
toincludecompanyvaluationsforairlinesandairportswithestimatedfor
theirweighted average cost of capital; assessment of domesticcargo
profitability for Indian carriers; and domestic andinternational
cargocapacityand traffic flowson the top ten
routesfromeachofthetenlargestairports.ReleaseDate:15June2014Earlybirdpriceto7March:
US$2555Advancepurchasepriceto31May: US$3555Regularpricefrom1June:
US$4555
CAPAIndiaGroundHandlingReport2014
Indiasgroundhandlingindustryispreparingfortransformationasthenewsectoralpolicyissettobeintroducedshortly.Thechangeswill
have cost and delivery implications for airlines,
incumbentoperatorsandglobalgroundhandlersseekingtoparticipate
inoneofthekeygrowthmarketsofthecomingdecade.Thisuniquereportwilladdress:
the outlook for traffic growth in both the passenger
andcargosegmentstoFY23;
analysis of the key handling segments including ramp,passenger
and baggage loading/unloading, cargo handling,aircraft servicing,
cleaning, security, transportation andterminalservices;
differentiated airline strategies for selfhandling
andoutsourcing addressing full service/low cost
carriers,Indian/foreignairlines,passenger/freightoperators;
demandforspecialisthandlingforsensitivefreight;
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benchmarking and SWOT analysis of incumbent
groundhandlersonmarketshare,competitivepositioning,costandquality
of service delivery, customer perceptions, andfinancialmetrics;
handlingrevenue,profitabilityandassetallocationatthetenlargestairports;
manpower utilisation, use of contract labour and
projectedrequirements;
investment requirements in technology, equipment
andtraining;
expectedimpactofSupremeCourtrulingonimplementationofthegroundhandlingpolicy;
economicregulationofthesector;
jointventureprospectsforinternationalserviceproviders;
andupcomingtendersfornewgroundhandlingconcessions.
ReleaseDate:7March2014Advancepurchasepriceto6March:
US$7555Regularpricefrom7March: US$8555
CAPAIndiaAirTrafficManagementReport2014
WithIndianairtrafficsettotripleoverthenextdecadethishasmajorimplicationsforairtrafficmanagement.Thisreportwilladdressacomprehensivesetofissuesincluding:
IndiasstrategicframeworkforATMoverthenext10years;
TrafficandaircraftmovementsforecaststoFY23for
domestic,internationalandoverflighttraffic;
Infrastructureandequipmentrequirestosupportprojected
growth,includingCNSandmeteorological;
Manpowerandtrainingrequirements;
ImplicationsforlicensingofIndiancontrollers;
Prospectsforenhancedmilitarycivilcooperationforsharing
ofairspace;
HowwellisIndiaplacedtoharmonisewithitsairspacewith
globalinitiativesinairnavigationsuchasSESARandNextGEN;
ImpactofIndiassatellitebasednavigationsystem,GAGAN;
BenchmarkingofIndianoperationsv.globalstandards;
StatusofnewproceduresincludingPerformanceBased
Navigation,GatetoGateandcontinuousdescent;
Implementationofsafetymanagementsystems;
Chargingstructuresandeconomicregulation;
ProspectsforcorporatisationandlessonsforIndiafrom
globalexperience.ReleaseDate:31March2014Earlybirdpriceto7March:
US$4555Advancepurchasepriceto30March:
US$5555Regularpricefrom31March: US$6555
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CAPAIndiaBusiness&GeneralAviationReport2014
With itsvast territory, rapideconomicgrowth,diverse
terrainandoftenpoor surface transportationoptions, India is an
idealmarketfor general aviation operations. Opportunities exist in
corporatetravel,
luxurytourism,sightseeing,pilgrimages,electioncampaigns,aerial
surveying, security, offshore platforms and providing
vitalconnectivity to remote and mountainous regions. However
thesectorisunderperformingasaresultofthehugechallengeswhichitfacesandwhichhavecurtailedgrowthinrecentyears.CAPAhasconductedthemostcomprehensiveresearchandmarketanalysis
of Business & General Aviation in India. We
conductedinterviewswithkey stakeholders, compiledandanalysed fleet
andorders data, reviewed government policy proposals, and
studiedtraffictrendstoarriveatanaccuratepictureofthisoftenneglectedsector.Topicscoveredinthereportinclude:
Structure of the GA market including traffic,
fleets,equipmenttype,operatorsandbusinessmodels;
Market demand and operations including key
drivers,products,pricing,coststructuresandprofitability;
Review of ground infrastructure including
airports,heliports,FBOs,VIPterminalsandplanneddevelopments;
Analysisofairspaceissuesincludingavailabilityofdedicatedcorridorsandoperatingrestrictions;
Review of the policy, regulatory and fiscal frameworkswithin
which GA operates and the impact this has
onviabilityandinvestment;
Availability of aircraft finance from Indian banks and
nonbankfinancialinstitutions;
Status of maintenance, repair and overhaul
servicesavailableincountryandthecapabilitiesofkeyplayers;
Manpower requirements and the need to address
theshortageofskillsandtraining;
CAPAs10yearGAfleetforecastandpollofkeystakeholdersontheoutlookforthesector.
ReleaseDate:30April2014Earlybirdpriceto7March:
US$4555Advancepurchasepriceto15April:
US$5555Regularpricefrom16April: US$6555
CAPAIndiaBilateralPolicyReport
International traffic to/from India has demonstrated strong
andsteady growth of 11.3% per annum over the last decade,
withpositive growth reported in every year during this period.
Theinternationalmarkethasalsobecomemorecompetitiveasnotonlyhave
more Indian carriers launched international services butforeign
airlines from all regions have also substantially increasedtheir
capacity into India, with Gulf carriers leading the way.
Withforeign airline investment now permitted, this adds an
interestingnew dimension to Indias strategy with respect to
bilaterals andmarketaccess.
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Inthistimelyreportweaddress: The global outlook and its
relevance to Indias aviation
policy, both currently and in terms of establishing a
wayforward;
Indias historical bilateral policy and the impact
ofprotectionism on the national economy and on Indiascarriers;
Thedirectionoftrade,tourismandinvestmentflowsandtheextenttowhichmarketaccessisalignedwiththeseflows;
The bilateral policy dilemma, balancing the interests
ofcompetingstakeholders;
Detailed analysis of existing bilateral agreements by keymarkets
in terms of seats, frequencies, aircraft size
andpointsofcall,andtheirdevelopmentoverthelast10years;
Projected seat entitlements thatwill be required by
globalregionoverthenext10yearstomeetexpecteddemandforinternationaltravelto/fromIndia;
Allocating
Indiancarrierseatentitlementsamongstaneverlargernumberofcarriersoperatinginternationalservices;
ImpactofincreasedmarketaccesstononmetrocitiesonthehubambitionsofIndiangatewayairports;
Impact of global alliances, foreign airline investment
andcrossborderjointventuresonbilateralpolicy;
DevelopingaroadmapforthefutureofAirIndiatoaddressoneofthekeydysfunctionalitiesinbilateralpolicy;
The bilateral policy settings that would best serve
Indiasnational interest and the potential for it to develop as
amajorregionalandinternationalhub.
ReleaseDate:15May2014Earlybirdpriceto7March:
US$5555Advancepurchasepriceto30April: US$6995Regularpricefrom1May:
US$8555
CAPAIndiaMROReport2014
Indiasprojected fleet expansion, theageingof
existingequipment,induction of new aircraft types, a growing
aerospace
componentssectorandthepossibilityofanindigenousregionalaircraftprogramall
create challenges and opportunities for airline operators
andMROsuppliers.Thisreportwillprovideindepthanalysisof
thesize,directionandprospects for the market based on a combination
of robust dataanalysis and extensive engagement with airlines,
maintenanceorganisations and government to a levelwhich has not
previouslybeenconductedinIndia.Coverageincludes:
fleetprofilesand10yeardeliveryforecasts;
expectedtiming,volumeandvalueofupcomingchecks; review of airline
strategies for airframe, engine and
componentsmaintenance; outsourcing strategies and use of
powerbythehour;
regulatoryandfiscalissues;
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assessment of current infrastructure and capabilities
andplanneddevelopments;
identificationofkeyserviceprovidersandnewentrants;
prospectsforonshoreservicedelivery; skills requirements
quantification and forecasts formarket
valueforlinemaintenance,engines,structural,modificationsandcompletions,andrefurbishment.
ReleaseDate:31May2014Earlybirdpriceto7March:
US$5555Advancepurchasepriceto15May: US$6995Regularpricefrom16May:
US$8555
CAPAIndiaAirlineAncillaryRevenueReport2014
CAPA is conducting a groundbreaking study into the potential
forthe development of ancillary revenues by Indian carriers
whichcouldmakeamajorcontributiontorestoringindustryprofitability.Thereportisbasedonextensiveprimaryresearchamongstairlines,passengers,
advertising agencies, retailers and other
prospectiverevenuepartnersandwillcover:
Evolutionofairlinebusinessmodelsfromfullservicetolowcostandhybrid;
Analysis of airline financials including costs,
revenue(includingnonoperatingandother)andprofitability;
Reviewofkeyancillaryrevenuestreamsincluding:o Advertising and
promotional opportunities e.g.
livery, onboard, collateral, website,
inflightentertainment,onboardsurveysandsampling;
o Product unbundling and enhancement e.g. baggagefees, food and
beverage, seat selection,
priorityboarding,wirelessconnectivity;
o Retail sales e.g. onboard duty and free and
gifts,cataloguesales,website;
o Saleoffrequentflyerpointstoprogrammepartners.
StatusofancillaryrevenueactivitiesinIndiabyairlinesand
by segment and their contribution to overall
financialperformance;andtechnologycapabilities;andtheimpactofregulatoryrestrictions;
PreparednessofIndiancarrierstopursueancillaryrevenuestrategies
in terms of management priorities,
investmentandresourceallocation,organisationsetup;
Customer perceptions of ancillary strategies and
readinesstoparticipate,includingtheroleofsmartphonesandtablets;
CAPAprojections for ancillary revenue potential for
Indianairlines by segment with profitability and return
oninvestmentanalysis.
ReleaseDate:31May2014Earlybirdpriceto7March:
US$5555Advancepurchasepriceto15May: US$6995Regularpricefrom16May:
US$8555
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CAPAIndiaAviationSkills&TrainingReport2014
Skills and training are essential for a professional,
sustainable andsafeaviation industry.Howeverthesectoroften
forgetstoplan forpeople.The growth of aviation in India will drive
demand across everydiscipline including pilots, cabin crew,
engineers, air trafficcontrollers, ground staff and handlers,
administration, regulatorsand management. CAPA estimates that the
Indian aviationworkforcewillexpandfrom150,000 todayto450,000 in
tenyearstime.And growth in India is just one of the drivers of the
demand
foreducationandtraining.Otherfactorsincluderegulatorychange,theadvent
of new technology and procedures, and the migration ofskilled
Indian resources to other growthmarkets, particularly theGulf.A
failure to respond will have implications for growth,
costs,efficiency and safety. And Indian aviation has had
firsthandexperience of the impact this can have, from the grounding
ofaircraft due to a shortage of pilots to the downgrading of India
toCategory2bytheFAAbecauseofinsufficientaircraftinspectors.Thisreportonacriticalbutoftenoverlookedissuewillinclude:
Airlinewise and airportwise employee strength bycategory;
Projected 10 year requirements for pilots, cabin
crew,engineersandnonoperationalstaff;
Impactofcompetitionforstafffromothergrowthmarkets; Drivers of
demand for aviation education and training
including growth, upgrading skills, new technologies
andprocessesandregulatoryrequirements;
Reviewof aviation education and training infrastructure inIndia
from flying schools to universities, maintenancetraining
facilities, flight simulators centres, cabin
crewacademiesandtheairtrafficcontrolcollege;
AnalysisofteachingmethodsandtoolsinIndiaandthelevelofprogresstowardscompetencybasedtrainingratherthanprescriptive
courses, including status of initiatives such
asMPLpilottraining;
Regulation of training quality and status of
harmonisationwithFAAandEASAstandards;
Industryperspectivesonthestrategiccompetitive,efficiencyandrevenuebenefitsfrommanagementeducation;
Experience of appointing expatriates in senior roles
inIndianaviationandwhytherehasbeensuchhighturnover;
Investor interest in the aviation education and
trainingsectorandhowthiscouldbeencouraged.
ReleaseDate:15June2014Earlybirdpriceto7March:
US$2555Advancepurchasepriceto31May: US$3555Regularpricefrom1June:
US$4555
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CAPAIndiaAirCargo&ExpressReport2014
Aircargoandexpresshasshownstronggrowthoverthelastdecadebutthesectorremainsataverynascentstageofdevelopment.Cargohandlingfacilitieshavehistoricallybeenpoor,butareimprovingasairportsaremodernised.Regulatoryissues,customsandquarantinedelays,
limited technology deployment and a lack of
specialisthandlingskillshavealsobeenachallenge.However, with Indias
economy expected to be among the mostdynamic in the world over the
next two decades, the countrysexpanding manufacturing sector and
increasing success in highvalue sectors such as pharmaceuticals,
automotive
components,fashiontextilesandjewellery,thegrowthpotentialisclearlyhuge.And
theopeningupofmultibrand retail, increasing sophisticationof the
Indian consumer and the expansionof online retailwill fastforward
the integration of the Indian economy into global
supplychains.Thiscomprehensivereportwillcover:
National, state and sectorwise analysis of the structure ofthe
economy, and projected investment and growth of keyindustries;
Review of Indias key trading partners including the
value,directionandcompositionoftradeflows;
Structure of air cargo and express operations
includingairlines,airports, shippersand freight forwarders
includingtheircapabilitiesandmarketshare;
Analysisofleadingdomesticandinternationalcargoairlinesand global
integrators, including passenger belly
anddedicatedfreighteroperations;
Historical performance of air cargo volumes and
projectedgrowthoverthenext10years;
Review of airport infrastructure including cargo
terminalcapacity, availability of dedicated equipment,
technology,warehousingandspecialisthandling;
Cargo facilitation issues including manpower and
training,customsandquarantine,documentationanddwelltimes;
Analysisofthewidersupplychainincludingeaseofsurfaceaccess to the
airport, intermodal opportunities, locationofdistribution and
logistics infrastructure and free tradezones;
PolicyandregulatoryissuesimpactingaircargoandexpressincludingtaxationandtransshipmentregulationsandtheirimpactonIndiascompetitiveness;
Roadmap based on realistic objectives and timeframes,basedonan
identificationofkeygapsandanoutlineof
therolethatkeystakeholderscanplaytostrengthenthesector.
ReleaseDate:30June2014Earlybirdpriceto7March:
US$5555Advancepurchasepriceto15June: US$6995Regularpricefrom16June:
US$8555
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CAPAIndiaAirport&TravelRetailReport2014
In 2012 CAPA had released the first India Airport & Travel
RetailReportwhichwaswidelyacknowledgedasthemostcomprehensiveandinsightfulstudyeverconductedondutyfreeandretailinIndia.ThefastgrowingIndianmarket,althoughrelativelysmallatpresent,isonethatcannotbeignoredbyglobalbusinessesinvolvedintravelretail.
At the time of the last report for example, duty free
liquorsaleshadalmosttripledinthepreviousthreeyears.A multibillion
dollar airport modernisation programme largelyfunded by private
sector investment, combined with strong andsustained traffic growth
and an increasingly affluent andsophisticated Indian consumermake
this one of themost excitingopportunitiesinglobalretail.And with
India liberalising visa entry requirements for 180countries from
late 2014 we expect to see strong growth ininternational inbound
traffic which is important for
drivingdeparturesrevenue.Butuniquelocalconsumertastes,evolvingaspirationsandthelargenumbers
of first time travellers entering the market mean
thatretailerscannotsimply transplantglobal formats to
Indiabutneedtodeveloplocalisedofferingsandkeepabreastofcontinualchanges.The2014editionwillpresentanupdateonkeydevelopmentsoverthelastcoupleofyearswithaparticularfocusonthefollowing:
Analysis of international and domestic traffic
growthtogetherwith forecasts through to 2023 for the ten
largestairports;
Status of airport modernisation programmes and
planneddevelopments,includingupcomingretailtenders;
Impact of proposed privatisation of Airports Authority
ofIndiaairportsonretailopportunitiesacrossthecountry;
Current and planned retail space and offerings at
keyairports;
AssessmentoftheperformanceofairportretailconcessionsacrossIndiaincluderevenuebyairport;
Indepth analysis of latest trends and sales figures bycategory
at the six metro airports e.g. liquor, fragrances,beauty and
cosmetics, chocolates, tobacco, fashion andelectronics;
Analysisofarrivalsanddeparturesretailperformance; Key trends in
passenger segments and their purchasing
behaviour as a result of evolving demographic and
socioeconomicdevelopments.
The objective of the report is to support planning and
investmentdecisions by global and Indian airport operators,
retailers,
brandsandinvestorswithaninterestintravelretail.ReleaseDate:30September2014Earlybirdpriceto31March:
US$5995Advancepurchasepriceto15Sep: US$7995Regularpricefrom16Sep:
US$9995
